WI Mine Equipment Makers Downplay New Jobs Linked To Proposed Bill

How many people last week in last week's media blitz about mining saw this post and the link to a story at WisBusiness.com that tamped down jobs' expectations at Wisconsin mine equipment makers were an iron mine enabled by the Legislature in Northern Wisconsin?

I've added a few more graphs from the WisBusiness.com piece and urge people to read the whole item.

Wednesday, March 7, 2012

Despite What You Hear On Talk Radio...

The mining bill would not have been a job-creator in Milwaukee factories, and would have had only a small impact on sales tax collections and the state budget picture because of exemptions in state tax law, reports WisBusiness.com:

MILWAUKEE -- A proposed new iron ore mine in northern Wisconsin is unlikely to boost jobs at Milwaukee-area manufacturers Joy Global and Caterpillar, leading makers of massive blasting and hauling equipment...

John Disharoon, vice president of industry relations for Caterpillar Global Mining, said any estimate of sales figures is purely speculative at this point. “Even after a permit is issued, it’s several years before any mine operations take place,” he said.

Caterpillar machinery for the proposed Wisconsin mine probably would not be made in Wisconsin, Disharoon said. 

“Our Milwaukee-area facility makes mining equipment that is way too large,” he said. However, sales of Caterpillar products for the proposed Wisconsin mine would go through the company’s Wisconsin authorized dealer, Fabco, he said, and as such, would be subject to applicable Wisconsin sales tax.